18% of insurance consumers make COVID-related adjustments
26 Jul 2021
COVID-19 changes consumer insurance behaviour
18% of consumers who currently own any type of insurance either cancelled a policy or switched to cheaper alternatives because of the COVID-19 pandemic. These findings come from the IRN Research report, The Insurance Consumer 2021. As a result of these changes, the amount consumers in total spend on general insurance produces declined by around 6% in 2020, compared with 2019, with declines in gross written premium or little growth in key markets like motor insurance, motor breakdown and travel insurance, especially the latter.
The Insurance consumer show clear purchasing traits
In studying how consumers behave when buying insurance, IRN Research found that
- By their nature, policyholders are price sensitive when buying insurance, with over seven-in-ten putting price first when buying all or some of their insurances
- On balance, consumers tend to downplay branding, with almost seven-in-ten being indifferent to the brand of the insurance provider when buying all or some of their insurances
- Consumers are cautious about taking insurance risks. When considering insurance cover, consumers have a bent towards being risk averse rather than being risk takers.
- Over half of consumers lack certainty when buying insurance, especially consumers under the age of 45.
- Over six-in-ten consumers like to buy insurance online and/or are willing to get advice online
About The Insurance Consumer Report
This report looks at some broad characteristics shared by all insured consumers. It specifically considers how consumers approach buying insurance, the relative importance of price vs. cover and the importance of insurance branding. It also considers the types of insurances consumers own and how COVID-19 has changed consumer behaviour.
This report does not go into detail on how different insurance products compare and contrast, for example, comparing policyholder satisfaction, claims behaviour, product switching or source of purchase across the different policy types. These issues are discussed in depth in individual insurance product reports
For this report, IRN Research commissioned research from MIS Group’s UK panel. The research was structured so that 2,002 nationally representative consumers aged 18+ were asked if they owned an insurance policy.
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